Updated: Nov 2, 2020
Deregulation talk was all the rage with the new administration in 2016, and it’s obvious that the stock market loved the concept. The deregulation trend has not only continued, it has intensified. There’s also no shortage of political and economic chatter about what deregulation means and who it impacts. This article considers the potential bottom line to you as a consumer as deregulation has shaped the U.S. economy since 2016, What might deregulation mean to your personal finances?
Investopedia defines deregulation as “the reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.” Experts further categorize deregulation as “economic” or “social.” Economic deregulation involves loosening governmental control in sectors like energy, communications, and transportation whereas social deregulation reduces laws related to health, safety, or environmental risks.
What might happen to your bank balance when economic or social deregulation takes place, and how can you keep and grow your money?
Have More Choices As A Consumer
The cornerstone of deregulation is that it is supposed to open the door to more competition among businesses that can now enter market sectors that were previously too heavily regulated for them to get in. More companies offering products and services should translate to more choices for you as a consumer. You also get the chance to “vote” for the companies you like (and against the ones you don’t) with your wallet. Deregulation aims to give you and your fellow consumers the ability to shape the companies who serve you by going elsewhere when you are dissatisfied. When it works, deregulation means that you’ll find more new products, better services, and more opportunities.